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Transactions between two private limited companies having same directors

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(Querist)
07 September 2021 Bill was raised by "A", a private limited company, but the amount was credited to another private limited company "B". Both private limited companies having the same directors. Will it be an issue? Any solution? Or these kind of transactions can be continued?
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CA R SEETHARAMAN

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CA R SEETHARAMAN (Expert)
07 September 2021 Such receipts will be considered as gift and taxable in the hands of B.
Such transactions can't be continued.
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Udaya Chandran

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Udaya Chandran (Querist)
07 September 2021 Sir, thanks for the reply.

Can't it be considered as loan/advance and adjusted/paid in the future? Kindly clarify.



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CA R SEETHARAMAN

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CA R SEETHARAMAN (Expert)
07 September 2021 Loan/Advance should be received from company A.
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Udaya Chandran

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Udaya Chandran (Querist)
08 September 2021 Sir, thanks for the reply.
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CA R SEETHARAMAN

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CA R SEETHARAMAN (Expert)
08 September 2021 You are welcome.............
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CS Divesh Goyal

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CS Divesh Goyal (Expert)
09 September 2021 It should be considered as Loan and voilation of provisions.
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Udaya Chandran

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Udaya Chandran (Querist)
09 September 2021 @Divesh Thanks for the reply.




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